United Nations Office on Drugs and Crime

East Asia and Pacific

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		Project Code and Sector Project Background and Justification Objective, Outcomes, Outputs and Main Activities Counterpart, Institutional Setting and Implementing Arrangements

VNMS65- Strengthening of the Legal and Law Enforcement Institutions in Preventing and Combating Money Laundering in Viet Nam

1. Project Code and Sector

2. Project Background and Justification

Money laundering is a global phenomenon that impacts on most countries in the world, including Viet Nam. The anti-money laundering countermeasures adopted by the international community mean that organised criminal networks, professional money launderers and terrorist groups seek to move their money laundering operations to countries with limited financial and economic control systems, and to diversify their money laundering modus operandi. Viet Nam, as a developing economy with strong foreign investment and a high 'cash economy' fulfils all the requirements money launderers look for when establishing and running their businesses. This project aims at supporting Viet Nam's anti-money laundering (AML) efforts through policy, research and operational inputs. The combination of specialized field knowledge and enhanced operational capabilities should result in more focused and more effective national anti-money laundering activities, regulations, and policies.

Organized crime, illicit drug trafficking, human trafficking and money laundering activities all affect Viet Nam. The proceeds from most organized criminal activity in Viet Nam are funds that need to be laundered. In addition, there is strong anecdotal evidence that illicit funds are received into Viet Nam from the United States, Canada, the United Kingdom, Australia and other jurisdictions as part of various money laundering operations. The existence of legislative loopholes and structural insufficiencies in the ability of the state (as an institution) to enforce laws, administer and deliver justice, and manage its administrative and economic affairs generally facilitates the development of a thriving, parallel, informal economic structure that competes with governmental structural socio-economic policies and strategies.

The Government of Viet Nam has demonstrated clear evidence of its aim to eradicate corruption in the country. There have in recent years been an increased number of prosecutions and confiscations of proceeds of corrupt activity. An effective AML system will assist the fight against corruption and enhance capacity to identify and investigate corrupt practices.

3. Objective, Outcomes, Outputs and Main Activities

Overall objective: Effective national anti-money laundering system in place in Viet Nam.

Outcome
The capacity of government law enforcement, prosecution and other criminal justice institutions as well as civil society responses to prevent, detect, investigate and prosecute cases of money laundering, will be strengthened in line with international standards.

Output 1:
National AML strategies developed by and coordinated through multi-agency National AML Committee.

Output 2:
A review of existing Vietnamese AML legislative and law enforcement measures mapped against the international AML/CFT standards contained in the FATF 40 + 9 Recommendations.

Output 3:
Existing training material modified and updated, including drafting of an "Anti-Money Laundering Handbook for Law Enforcement Officers" and an "Anti-Money Laundering Handbook for Prosecutors and Judges", for law enforcement, prosecutors and the judiciary to combat and punish money laundering. The above material included in the training curricula at the Police Academy, Prosecution College, Border Army Academy and Court College.

Output 4:
Twelve in-service training sessions conducted for law enforcement, prosecution and judges as well as other relevant officials, including officials of the Anti-Money Laundering Department (AMLD), using the material developed under output 3.

Output 5:
Two mock trials conducted for training of law enforcement, prosecution and judges as well as other relevant officials, including officials of the AMLD, using the material developed under output 3.

Output 6:
International activities conducted to increase cooperation with key-countries in the region and wider international community, including participation in international meetings as well as study tour(s).

Output 7:
Conduct research into money laundering in Viet Nam and on the vulnerability of a cash-based economy to money laundering.

Output 8:
An inter-agency guideline in implementing Penal Code Article 251 developed.

Output 9:
Two computer-based training (CBT) centers established to support ongoing training on AML/CFT.

Output 10:
Eight awareness raising workshops for regulators and reporting entities in the real estate; four awareness raising workshops for the commercial banking system and four typology training courses for the provincial customs officials.

4. Counterpart, Institutional Setting and Implementing Arrangements

UNODC will execute the project through the UNODC Viet Nam Country Office with technical backstopping of substantive matters by UNODC HQ. The UNODC Viet Nam Country Office will work in close cooperation with the Global Programme on Anti-money Laundering and the Terrorism Prevention Branch of UNODC HQ.

Representatives of the implementing agencies will form the Project Management Board. A National Project Director will be appointed to oversee the implementation of the project and will act for the executing agencies responsible for achieving project objectives and the use of project resources. An International Project Coordinator will be recruited to backstop the project and provide technical advice. A National Project Coordinator will be recruited to coordinate the implementation in close consultation with the executing and implementing agencies. An administrative support staff will also be recruited to assist in the implementation.